21 4 pts On October 1, Wilson Company sold merchandise in the amount of $5,800 to Taylor Co., with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Wilson uses the periodic inventory system. On October 4, Taylor returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Wilson must record on October 4 is/(are): Merchandise Inventory 350 a. Sales Returns and Allowances 350 Accounts Receivable 500 b. Sales Returns and Allowances 500 Cost of Goods Sold 350 Merchandise Inventory 350 Sales Returns and Allowances 500 C. Accounts Receivable 500 Merchandise Inventory Cost of Goods Sold 350 350 d. Accounts Receivable 500 Sales Returns and Allowances 500 e. Sales Returns and Allowances 500 Accounts Receivable 500